Gandhi, who owns a majority stake in the venture, came in late to the project. The land, located at 42-24 Crescent St., was purchased roughly a year ago by minority partner Sam Chang in a $4.5-million deal. Total cost of the project is roughly $7 million. Chang's company, Mike Sam Construction, will build the hotel. Gandhi and a third partner, Manish Patni, will run the facility.

Gandhi tells GlobeSt.com the area is ripe for hotel development. "We like the area and we think it's going to be a rebuilding zone," he says. "There are a lot of new establishments coming into the area, such as MOMA." The Museum of Modern Art recently took up temporary quarters in Long Island City while its 53rd Street space undergoes renovations.

Neighborhood response to the project has been favorable, Gandhi says, adding that he expects his clientele to be a mix of business travelers flying in and out of nearby LaGuardia airport and tourists "who want to stay in an affordable place."